Top 5 Financial Services Mutual Funds Based on One-Year Returns

India's Mutual Fund industry has continued to attract strong investor interest as more retail investors turn to equity markets through systematic investments. The growing participation has made mutual funds one of the preferred investment avenues, with domestic inflows playing an increasingly important role in the equity market.

Within the equity mutual fund space, sectoral funds have also gained attention. These schemes invest in a specific segment of the market, allowing investors to take exposure to sectors they believe have long-term growth potential. Under SEBI's guidelines, sectoral funds are required to invest at least 80 per cent of their assets in companies belonging to a particular sector.

Also Read - Best-Performing Mutual Funds in the Last One Year

One such category is financial services mutual funds. These schemes primarily invest in Banks, non-banking financial companies (NBFCs), insurance companies, asset management companies and other financial institutions. Since the financial sector plays a key role in credit growth, economic activity and capital markets, these funds often benefit when the broader economy expands. However, because their portfolios are concentrated in a single sector, their performance is also influenced by interest rate movements, regulatory changes and the overall health of the banking industry.

Against this backdrop, here is a look at the five best-performing financial services mutual funds based on their one-year returns as of July 7, 2026.

Top 5 Financial Services Mutual Funds

Investors should note that financial services funds are sectoral mutual funds and generally carry higher risk than diversified equity schemes. Their returns depend largely on the performance of the banking and financial services sector, making them suitable for investors with a higher risk appetite and a long-term investment horizon.

Disclaimer: The article is for informational purposes only and not investment advice.